What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-14 compared with 2026-05-14 · 134 added, 53 removed, 44 unchanged (81% of the section changed)

16 unchanged sentences

properties and, where appropriate, obtaining negative ownership or other control rights in projects.

Developments During the First Quarter of 2026

20, 2026, we completed a convertible note financing with Labrys Fund II, L.P.

for a $150,000 purchase price, including $114,000 of

cash proceeds to the Company after specified deductions and offsets, together with a 10% promissory note in the original principal

amount of $172,500, 200,000 commitment shares, and an initial 12,000,000-share conversion reserve.

Effective January 27, 2026,

we entered into a Multi-Film Investment and Compensation Agreement with SSS Entertainment, LLC that revised our arrangement with

respect to POSE , contemplated funding for MOTION , and contemplated an additional investment in an untitled SSS-produced

Developments During the Six Months Ended June 30, 2026

January 20, 2026, we completed a convertible note financing with Labrys Fund II, L.P.

a $150,000 purchase price, including $114,000 of cash proceeds to the Company after specified

deductions and offsets, together with a 10% promissory note in the original principal amount

of $172,500, 200,000 commitment shares, and an initial 12,000,000-share conversion reserve.

January 27, 2026, we entered into a Multi-Film Investment and Compensation Agreement with

SSS Entertainment, LLC that revised our arrangement with respect to POSE , contemplated

funding for MOTION , and contemplated an additional investment in an untitled SSS-produced

picture, each subject to the terms of the agreement and applicable approvals.

On March 12, 2026, our

Board approved entry into the Multi-Film Agreement and ratified Amendment No.

1 to the APHP/SSS Agreement relating to POSE

and BARRON’S COVE , effective December 29, 2025.

In connection with that Board approval, the Company became obligated,

subject to the agreement terms and applicable approvals, to issue $350,000 in value of common stock to Bannor Michael MacGregor and

The Noah Morgan Private Family Trust, split equally.

PROTECTOR was released

March 12, 2026, our Board approved entry into the Multi-Film Agreement and ratified Amendment

1 to the APHP/SSS Agreement relating to POSE and BARRON’S COVE , effective

December 29, 2025.

was released in U.S.

theaters on March 6, 2026.

MOTION remained

in post-production during the quarter.

following table summarizes our results of operations for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

May 26, 2026, and executed on June 3, 2026, we entered into a Master Investment and Co-Production Agreement, together with related ancillary

agreements, with Russ Posternak and Becky III The Movie LLC relating to the motion picture The Last Temptation of Becky (referred

to in the agreement as “BECKY 3” ).

Under the agreement, we are treated for all economic purposes as having made a

$300,000 senior equity investment in the picture without funding any cash, entitling us to recoup 120% of that amount ($360,000) out

of the picture waterfall on a senior equity basis, pari passu with up to $300,000 of other senior equity, together with a 10% distribution

fee corridor participation, a 10% participation in the producer’s future BECKY -related producer fees and backend, an assignment

of certain BARRON’S COVE collateral recovery rights, first look rights on future projects of the producer’s production

company, and customary company and individual screen credits.

As consideration, we agreed to issue 250,000 shares of common stock and

to grant options to purchase 300,000 shares at $0.20 per share.

Our obligation to deliver those securities was subject to approval by

our Board of Directors and other conditions precedent, which were satisfied subsequent to quarter end.

See Note 5, Note 7 and Note 9 to the condensed consolidated financial statements.

the six months ended June 30, 2026, we applied $875,000 of amounts otherwise receivable by us toward our funding obligations under

the Multi-Film Agreement, in exchange for content interests relating to MOTION and an untitled SSS-produced picture and in partial

satisfaction of amounts payable with respect to POSE.

The transaction did not involve the receipt or payment of cash.

to the condensed consolidated financial statements and “Liquidity and Capital Resources — Produced and Licensed Content

Costs” below.

the six months ended June 30, 2026, Labrys Fund II, L.P.

converted a portion of the January 2026 note into 162,600 shares of common

Scheduled amortization payments under the note commenced July 20, 2026.

Developments Subsequent to June 30, 2026

July 1, 2026, we granted options to purchase an aggregate of 700,000 shares of common stock, at an exercise price of $0.20 per share,

to four designees of SSS Entertainment, LLC from the option pool contemplated under the Multi-Film Agreement.

July 25, 2026, the picture had its world premiere at the Fantasia International Film Festival in Montreal under the title The

Last Temptation of Becky .

The picture is to be distributed by Quiver Distribution.

As of the date of this report, no theatrical

release date had been announced and we had collected no amounts in respect of our senior equity recoupment preference.

August 6, 2026, our Board of Directors approved, and we issued, an aggregate of 930,000 shares of common stock, consisting of 500,000

shares to Timothy Battles, a director, and 100,000 shares to Pat Grant, in each case at $0.10 per share for cash;

80,000 shares to

Monsour Hanoud in consideration of services;

and 250,000 shares to Russell Posternak pursuant to the Master Investment and Co-Production

On the same date, we granted options to purchase 300,000 shares of common stock at an exercise price of $0.20 per share,

with a term expiring May 26, 2028, pursuant to that agreement.

Note 9 to the condensed consolidated financial statements for additional information regarding events subsequent to June 30, 2026.

of Operations

Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

following table summarizes our results of operations for the three months ended June 30, 2026 and 2025:

Months Ended June 30,

Cost of revenues

Operating Expenses:

administrative

Research and development

and marketing

Operating Expenses

Net Operating Loss

Other Income (Expenses):

Interest income

Other Income (Expenses)

Loss before income taxes

The Company had no revenues during the three months ended June 30, 2026 and 2025.

and Administrative Expenses.

General and administrative expenses for the three months ended June 30, 2026 were $56,481, compared

with $750,406 for the three months ended June 30, 2025.

The 2025 period included $110,000 of stock-based compensation expense to a consultant,

the write-off of $196,200 of loans receivable that management determined were uncollectible, and the expiration of rights to a screenplay

carried on the books at $150,834.

The 2025 period also included $73,000 of stock option expense compared to $0 in the 2026 period.

one-time expenses were offset by lower operational expenses including a $81,000 reduction in legal and professional fees and a $86,000

reduction in consulting fees.

and Marketing Expenses.

Sales and marketing expenses were $2,204 for the three months ended June 30, 2026, compared with $1,369 for

the comparable prior-year period.

Interest expense was $12,773 for the three months ended June 30, 2026, compared with $8,897 for the three months ended June

Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

following table summarizes our results of operations for the six months ended June 30, 2026 and 2025:

Months Ended June 30,

Cost of revenues

Operating Expenses:

General and administrative

Research and development

Sales and marketing

Total Operating Expenses

and marketing

Operating Expenses

Net Operating Loss

1 unchanged sentence

Interest income

Interest expense

Net Other Income (Expenses)

Other Income (Expenses)

Loss before income taxes

During the three months ended March 31, 2026, revenues were $1,220, compared with $0 for the three months ended March 31, 2025.

was primarily attributable to income from the BARRON’S COVE CAMA.

$ (1,249,465 )

During the six months ended June 30, 2026, revenues were $1,220, compared with $0 for the six months ended June 30, 2025.

was primarily attributable to income from the BUFFALOED CAMA.

and Administrative Expenses.

General and administrative expenses for the three months ended March 31, 2026 were $112,656, compared

with $475,457 for the three months ended March 31, 2025.

The period-over-period reduction in expense was primarily attributable to

the 2025 period including $232,995 of stock option expense compared to $0 in the 2026 period and lower professional and consulting

Additionally, legal and consulting fees decreased by $183,242 for the 2026 quarter compared to the 2025 quarter as

the Company sought to reduce operating expenses.

General and administrative expenses for the six months ended June 30, 2026 were $169,137, compared with

$1,225,863 for the six months ended June 30, 2025.

The 2025 period included $110,000 of stock-based compensation expense to a consultant,

the write-off of $196,200 of loans receivable that management determined were uncollectible, and the expiration of rights to a screenplay

carried on the books at $150,834.

The 2025 period also included $306,030 of stock option expense compared to $0 in the 2026 period.

one-time expenses were offset by lower operational expenses including a $159,000 reduction in legal and professional fees and a $190,470

reduction in consulting fees.

and Marketing Expenses.

Sales and marketing expenses for the three months ended March 31, 2026 were $1,582, compared with $461 for the

three months ended March 31, 2025.

Interest expense for the three months ended March 31, 2026 was $58,221, compared with $12,919 for the prior-year period, with

the change primarily attributable to credit card debt and the Labrys financings.

Sales and marketing expenses for the six months ended June 30, 2026 were $3,786, compared with $1,830 for the

six months ended June 30, 2025.

Interest expense for the six months ended June 30, 2026 was $70,994, compared with $21,816 for the prior-year period, with the

change primarily attributable to credit card debt and the Labrys financings.

and Capital Resources

of March 31, 2026, we had cash and cash equivalents of approximately $22,000, a working capital deficit of approximately $1,452,000,

and accumulated deficit of $$7,997,633.

As of December 31, 2025, we had cash and cash equivalents of $124 and negative

working capital of approximately $435,000.

These conditions raise substantial doubt about our ability to continue as a going concern.

During the three months ended March 31, 2026, net cash used in operating activities was $12,949, compared with net cash used

in operating activities of $155,207 for the three months ended March 31, 2025.

The 2026 period primarily reflects the collection of $1.0M

of receivables that were subsequently redeployed into new and incremental film production activities.

During the three months ended March 31, 2026, net cash provided by financing activities was $35,163, compared with net cash

provided by financing activities of $159,826 for the three months ended March 31, 2025.

The 2026 period reflects net Labrys note proceeds

of $172,500 and repayment of $25,000 against the Labrys note and $112,337 of repayment of related-party borrowings.

of June 30, 2026, we had no cash and cash equivalents, a book overdraft of $767 included in accounts payable and accrued expenses, a

working capital deficit of $1,517,590, and an accumulated deficit of approximately $8.1 million.

These conditions raise substantial doubt

about our ability to continue as a going concern.

During the six months ended June 30, 2026, net cash used in operating activities was $51,190, compared with net cash

used in operating activities of $244,772 for the same 2025 period.

The 2026 period reflects $1,029,404 of collections on amounts due under the Company’s BARRON’S COVE revenue

collection rights and $875,000 applied toward funding obligations under the Multi-Film Investment and Compensation Agreement.

The Company had no investing activities during the six months ended June 30, 2026 and 2025.

Produced and Licensed Content Costs.

the six months ended June 30, 2026, produced and licensed content costs increased from $300,000 to $1,175,000, and accounts receivable

decreased from $1,150,000 to $121,816.

The decrease in accounts receivable reflects $1,029,404 of collections on amounts due to the Company

under its BARRON’S COVE revenue collection rights, offset by $1,220 of receivables arising during the period.

The Company applied

$875,000 toward its funding obligations to SSS Entertainment, LLC under the Multi-Film Investment and Compensation Agreement, in exchange

for assigned economic interests in the related pictures, which amount is included in produced and licensed content costs.

assesses unamortized content costs for impairment in accordance with ASC 926-20 when events or changes in circumstances indicate that

the fair value of the content may be less than its unamortized cost.

During the six months ended June 30, 2026, net cash provided by financing activities was $51,066.

The 2026 period reflects

net proceeds and repayments from promissory notes of $203,750 and $25,000, respectively.

Additionally, during the first six months of

2026, the Company borrowed and repaid $2,626 and $130,310 under related party notes payable.

During the six months ended June 30, 2025,

net cash provided by financing activities was $245,876.

The 2025 period reflects $259,906 of borrowings and $15,080 of repayments under

notes payable to related parties.

Requirements.

We expect our expenses to increase in connection with our ongoing film development and production activities and our public-company

reporting obligations.

We expect to finance operations and investments through a combination of project receipts, debt financings, equity

issuances, and strategic transactions, although there can be no assurance that sufficient capital will be available on acceptable terms,

We expect our expenses to increase in connection with our ongoing film development and production activities and our

public-company reporting obligations.

We expect to finance operations and investments through a combination of project receipts, debt

financings, equity issuances, and strategic transactions, although there can be no assurance that sufficient capital will be available

on acceptable terms, or at all.

Accounting Policies and Estimates

12 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis